HSC-BST-Operations: Role of operations management

lydia le
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Flashcards on HSC-BST-Operations: Role of operations management, created by lydia le on 05/04/2013.

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lydia le
Created by lydia le almost 6 years ago
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Question Answer
Describe cost leadership as a strategic role of operations management Cost leadership refers to operating management that a business focuses on volume of outputs over quality of products. The business produces products at cheap prices that meets the price competitive advantage. Thus, the operations management focuses on the speed of processes and lowing costs in order to produce mass production.
Describe the differences between the secondary and tertiary industries Secondary industry – involving processing raw materials -converts raw materials into semi-finished or finished goods -Produces goods from raw materials for sale to the tertiary industry -produces semi-finished goods for sale to manufactures =========== Tertiary industry- How the business can provide its services -involves the distribution, transportation or retailing of finished goods -This is the largest employment sector of the economy that providing human resources and services to the market
OPERATIONS SYSTEM: Outline the characteristics of manufacturing-based businesses OPERATIONS SYSTEM: The characteristics of manufacturing-based businesses: INVENTORY-Stored in a warehouse SIZE OF OPERATIONS: Large facilities COMMUNICATION WITH CUSTOMERS: Low customer contact LOCATION: More centrally located
OPERATIONS SYSTEM: Outline the characteristics of serviced-based businesses The characteristics of serviced-based businesses. NATURE OF OUTPUTS: Intangible products SIZE OF OPERATIONS: Generally small TOOLS/USES OF EQUIPMENT: Labour-intensive MEASUREMENT OF QUALITY: feedback from customers ADAPTABILITY: Short response time to changes in the market
Examine the impact of corporate social responsibility (CSR) on operations The impact of corporate social responsibility (CSR) on operations such as: -increasing pressure from customers, society and governments requires businesses to examine their impact on the environment and the quality of life of society -Businesses obliged to use resources in a sustainable manner, reduce negative environmental impacts, treat people and employees with care and conduct their business in an open honest manner -improving the efficiency of resource use will improve productivity and reduce costs. -outputs are not just the goods and services provided by the business, they are also the production of waste and pollution. -businesses that adopt practices that respect employees and provide a safe but challenging work environment often find improvements in productivity and quality. -stakeholders wish to understand the reasoning behind business decisions that have an impact on them
The strategic role of operations To give the business a competitive advantage
How the operations function contributes to the marketing function in a business Operations produces a product that satisfies the wants and expectations of consumers
Give an example of the industry in which customer service is the dominant product Tourism
Explain the difference between efficient and effective operations management Effective operations management is concerned with achieving the objectives of the operations plan such as ensuring the outputs match the specifications. ===== An operations manager with an efficiency objective will focus on reducing waste in terms of time and resources and lowering costs as much as possible. For example, reducing lead time would improve the efficiency of operations.
Assess the importance of being able to customise outputs in service-based businesses Service-based businesses find it difficult to offer a standardised product because every individual customer will have different wants, which need to be accommodated to maximise their satisfaction. Unlike a physical good, a service can be changed at nearly every stage of the operations process, often because they are labour intensive. Customers expect that services can be modified, unlike a tangible product, which is impossible to change once completed. Being able to customise outputs is important for the business to gain a competitive advantage
Describe the strategic decisions made by an operations manager Strategic or long-term decisions need to fit with the business’s overall plan. For operations strategic decisions will concern new product development to replace those that reach the end of their life cycle. The capacity or size of operations will be important as the operations manager will need to make decisions about what capital equipment and facilities the business may need in the future. The number of employees will be considered as well. Decisions about where to locate
Explain why there is interdependence between operations and the other key business functions Interdependence exists because there is specialisation. -Operations relies on the finance function to provide it with the capital it needs to buy resources. -Operations relies on human resources to supply suitably qualified, experienced and skilled staff. -Operations relies on marketing to research the market and identify features of a product customers’ desire. === In return, -The operations function supplies a product that will help the business earn revenue from sales and profit (marketing) so that all resources (assets/finance), including human, can be paid